SHOPIFY FRAUD PROTECTION – SHOPIFY DROP SHIPPING TUTORIAL
Someone on my website asked me what do I do when it comes to Shopify fraud protection. In this blog post I’m going to answer this question.
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Shopify will notify you if they think there is something wrong with one of your orders.
There are three options: Low risk, Medium risk, and High risk.
If Shopify notify you of a low risk order, you should fulfill this order because in 99.9% of the time, there is really nothing wrong with the order. The way Shopify determines if there is a problem with the order is by comparing the name of the person that purchased the product and the name on the credit card, the address of the person that bought the product and the address of the person on the credit card, etc.
So if the person is on vacation and place the order from Hawai for example, Shopify will know with their IP address where they made the purchase, so if on the credit card of the person the address is from let’s say New York, Shopify might classify this order as low risk.
Another possibility is if the person making the order has two family names on the credit card, but only uses one when they place the order on Shopify. Shopify will probably send you a low risk notification for that order also…
As you can see, these are not a big deal. You can fulfill these orders without having to worry about anything.
You only have to worry when you receive an medium and high risk notification. If it is a high risk notification, I NEVER FULFILL these orders. In most cases, it is someone using a stolen credit card trying to make a purchase. The problem with these orders is if you fulfill them, you WILL HAVE TO REFUND THAT ORDER.
It happened to me not long ago; someone got the numbers from my credit card (Or cloned it) and they made a lot of purchases in a period of a few days. When I realized this, I called my credit card company and they cancelled all of these orders. What this means is that all of the stores that got money will end up LOSING THE MONEY.
What this means for you is this: If you fulfill a high risk order, chances are super high that you will have to refund that money!! This is why there is no point in fulfilling these orders…You will lose the money at some point anyways, and you will have already purchased the product on Aliexpress and sent it to the client, so you will lose that money also.
Also, every time you get a chargeback on your payment processing account (Someone filing a complaint against you on Paypal, Stripe, etc), it affects your rating with that payment processing company. If you use Paypal for example and you have too many chargeback, Paypal may decide to hold your money for a certain amount of time before releasing it to you. Even worse, they could actually ban your account!!
For the medium risk orders, you have to use your judgment. Shopify usually gives you a reason why they think it might be a fraud. If this is just an address issue, I would fulfill the order….But if it is a completely different name and address, I would probably just cancel the order.
Don’t worry too much about these things, because it really doesn’t happen often. Less than 0.5% of your orders will be high risk, but at least now you know what to do if it happens to you!
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